Business owners policy: A BOP is typically designed for small and medium-size businesses. It bundles multiple coverages such as general liability and property insurance into one policy. The single premium reduces the overall cost of insurance.
Commercial package policy: For growing companies or those with complex or specialized risks, a BOP may prove insufficient. A CPP offers more options. It allows you to bundle several types of coverage into one policy, but is less limited in the types of coverage it can include. In short, it can be better customized to fit the unique needs of your business.
A commercial package policy typically includes property insurance, general liability, business income insurance, business vehicle insurance, business crime insurance, commercial umbrella liability, electronic data processing coverage, equipment breakdown coverage, employment practices liability, inland marine insurance, and pollution liability.
While this list may seem exhaustive for many companies, it’s important to note that a CPP does not include all necessary coverage. A CPP doesn’t provide directors and officers liability; health, disability, and life insurance; or workers’ compensation. Business owners must establish separate policies for these items.
To determine which options are best for you, review your company operations with your insurance agent.